Anyone trade the ICE FANG contract today ?

[ajacobson]

Asset allocation. It will be very dependent on how or if liquidity develops. Slippage in the actual cash is awful and that would lead me to expect the future will be worse. I'll see how the liquidity develops.
At actual market crunch times, the liquidity in some of the cash names disappears in size. That shouldn't make for a great market, but I'm willing to explore the liquidity if it develops.

 

[sle]

Are they going to list options on this thing?

 

[ajacobson]

DK

 

[ajacobson]

There is a kinda-sorta ETF (FNG), but it's too broad.

 

[bpr]

Why do you want them? The leverage? To someone who is a long term holder they don't make sense tax wise and for a short term holder the slippage will get you.

yes much more leverage without paying interest to broker ...
also no dependency on stocks available to borrow for shorting..
no risk of getting your short stocks called
also 23 hours trading
futures single market instead of gazillion exchanges & dark pools...
hopefully cash settled as well so no headache of delivery

this reduces risk on many aspects for a trader.

Slippage is function of liquidity obviously I want slippage to be close to the corresponding stocks before trading in them

tax wise I am not sure should be same 1256 as other futures ?

 

[Robert Morse]

yes much more leverage without paying interest to broker ...
also no dependency on stocks available to borrow for shorting..
no risk of getting your short stocks called
also 23 hours trading
futures single market instead of gazillion exchanges & dark pools...
hopefully cash settled as well so no headache of delivery

this reduces risk on many aspects for a trader.

Slippage is function of liquidity obviously I want slippage to be close to the corresponding stocks before trading in them

tax wise I am not sure should be same 1256 as other futures ?

Well said.

 

[truetype]

yes much more leverage without paying interest to broker ...
also no dependency on stocks available to borrow for shorting..
no risk of getting your short stocks called
also 23 hours trading
futures single market instead of gazillion exchanges & dark pools...
hopefully cash settled as well so no headache of delivery
tax wise I am not sure should be same 1256 as other futures ?

Some of those are correct, some incorrect. "I'll leave it as an exercise for the reader..."

 

[comagnum]

If you want a breakout mkt there are plenty on the CME. Not willing to pay the bloated ICE fees to trade FANG. Seems like a lot of people these days are a 1 trick pony trading only the lethargic ES anyway.

Nikkie 225 in full on parabolic breakout - talk about momo!

 

[Maverick74]

yes much more leverage without paying interest to broker ...
also no dependency on stocks available to borrow for shorting..
no risk of getting your short stocks called
also 23 hours trading
futures single market instead of gazillion exchanges & dark pools...
hopefully cash settled as well so no headache of delivery

this reduces risk on many aspects for a trader.

Slippage is function of liquidity obviously I want slippage to be close to the corresponding stocks before trading in them

tax wise I am not sure should be same 1256 as other futures ?

Guys, the interest cost is priced into the futures. It's priced into ALL futures. If a stock is hard to borrow, it will also be discounted through the futures. There really are no benefits. There is virtually no liquidity overnight and sure as hell wouldn't be if a shock event came out.

 

[MattZ]

Here are the specs for the FANG Futures we created. http://www.optimusfutures.com/tradeblog/encyclopedia/nyse-fang-index-future-contract-specification/

I appreciate the feedback you guys have on this contract. Puts me in perspective what traders both Futures and Equities seek in a contract.